<div id="readability-page-1">Inflation soars again: Cleveland Fed estimates May inflation at 4.18%, the highest in three years since before the Iran war. Fed policy dilemma: Persistent inflation and new hawkish leadership under Kevin Warsh could halt rate cut plans and even trigger hikes. AI rally at risk: Tech-heavy market gains face pressure as rising yields and policy shifts threaten valuations and momentum.</div>

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<p>Cleveland Fed projects May inflation at 4.18%, the highest in three years, raising concerns over potential rate hikes under new leadership. Persistent inflation may disrupt rate cut plans, impacting tech-heavy market gains as rising yields threaten valuations.</p>

- May inflation is estimated at 4.18% by the Cleveland Fed, marking the highest level in three years.  
- The Federal Reserve faces a dilemma as persistent inflation under new leadership may halt rate cuts and prompt interest rate hikes.  
- The tech-heavy market's gains are at risk due to rising yields and potential policy shifts that could impact valuations and market momentum.

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Cleveland Fed's hot inflation forecast fuels rate hike fears